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Silver Trading | Silver Falls Below Predicted Levels: What’s Next?


Silver Trading | Silver Falls Below Predicted levels: What's next?

Silver prices witnessed a speculative plunge in the most recent silver trading session. Prices dropped below 2 January 2023 low in earlier trade. As per our outlook given on 27 September 2023, after breaching support 71080 prices touched both predicted levels.

Silver prices witnessed its biggest intraday fall since 11 May 2023 in the recent silver trading session. Touched a one and half year low, in anticipation of Interest rate hike jitters, which emerged after hawkish Fed pause and concerns about industrial demand after weak manufacturing PMIs for China and Europe.

Adding to this, the surging bond yields and stronger dollar continued putting pressure on the metals prices.

Meanwhile, the traders continued to assess the latest economic data for clues on the Fed’s monetary policy path. The Fed-preferred core PCE price index rose less than projected in August, while the country’s GDP growth came at 2.1% for the second quarter.  Now, the attention turns to JOLTS Job Openings market figures, set to release later today.

Overall, silver remains underpinned by tight supply and efforts to curb carbon emissions sped up the development of solar panel technologies with higher conduction needs.

Silver Trading | Technical Outlook

The technical outlook of the most recent silver trading session.

 Silver prices witnessed its biggest intraday fall since 11 May 2023 in the most recent silver trading round. Prices had a more than 4% gap down opening today. Touched a multiple week low 65666 and traded at 67048 compared to Friday’s close of 69857.00.

On the above chart, a strong breakdown of eight-month support which is still indicating a weakness in the near future. However, after recent drastic fall, prices may consolidate around 68500-69500 levels which could attract selling pressure. And prices are appearing to test next support 64800-63500 in near future.

Alternatively, on the upside massive resistance is seen at 70050 a break above only direction will change. And prices may rebound towards 70900-72350.00.

Commodity Samachar
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Also Read: Commodity Market Today | Will US JOLTS Job Openings be the key agenda today?, Commodity Market Today | US ADP NFE Change & OPEC Meeting: What’s Today’s Key Agenda?